About RSMS for CAT
Capital Market Solutions (CMS) offers a comprehensive Regulatory, compliance and reporting software solution called RSMS (Regulatory Surveillance and Monitoring System) that caters to the needs of financial institutions such as Investment Banks, Exchanges, Broker-Dealers, Hedge Funds, Asset Managers, Trading and Clearing Firms. RSMS includes a dedicated module for Consolidated Audit Trail (CAT) reporting, which helps firms comply with the CAT regulations set forth by the Financial Industry Regulatory Authority (FINRA).
The Case
A mid-sized financial firm, a client of CMS, was utilizing the RSMS solution for its CAT reporting requirements. Following a system upgrade over the weekend, the firm’s vendor Trading system erroneously labeled several institutional customer records as “Foreign,” resulting in improper reporting of CAT transactions.
How RSMS Helped
The RSMS solution, with its robust CAT Analytics tool, was instrumental in detecting this anomaly. The CAT Analytics engine within RSMS continuously monitors the daily count of CAT reporting records against the 5-day and 30-day averages. In this case, the analytics engine identified a significant deviation from the normal reporting volumes, alerting the firm’s support team to take corrective action.
Without the RSMS CAT Analytics tool, the firm would have been unaware of the incorrect reporting, exposing it to potential FINRA audits and disciplinary fines. The RSMS solution’s proactive detection and alerting capabilities allowed the firm to quickly identify and address the issue before it escalated, ensuring accurate and compliant CAT reporting.
The RSMS CAT Analytics tool leverages advanced algorithms and machine learning techniques to identify anomalies, trends, and patterns in CAT reporting data. This allows financial institutions to stay ahead of potential reporting issues and take prompt action to maintain regulatory compliance.
One of the key features of the RSMS CAT module is its ability to provide detailed analytics and insights into the firm’s CAT reporting activities. The solution generates comprehensive reports, dashboards, and visualizations that enable the firm’s compliance and operations teams to understand the health of their CAT reporting, identify areas for improvement, and quickly rectify any discrepancies.
Conclusion
The case study highlights the critical role that the RSMS solution, and its CAT Analytics module, played in detecting and addressing the improper CAT reporting issue faced by the mid-size financial firm. By leveraging advanced analytics and proactive alerting mechanisms, RSMS empowered the firm to maintain regulatory compliance, avoid potential fines, and ensure the integrity of its CAT reporting process.
The seamless integration of the RSMS solution with the firm’s trading system, coupled with its robust analytical capabilities, demonstrates the value that CMS brings to its clients in the financial industry. By providing a comprehensive and reliable regulatory compliance platform, CMS helps firms navigate the complex regulatory landscape, mitigate risks, and focus on their core business objectives.